Which of the following is not a characteristic of common stock:
A)has no maturity date
B)considered a permanent form of long-term financing
C)has claims on assets prior to those of preferred stock
D)is a residual form of ownership

Question

Quizplus · Accepted Answer

Common stock has claims on assets after those of preferred stock. Preferred stock has priority over common stock in terms of claims on assets and dividends.

Which of the Following Is Not a Characteristic of Common